Thursday, November 5, 2009

ford – profiting despite it all

Ford posting a profit of $997 million in the third quarter comes as a surprise especially given the fact that it took no bailout money from the government. The Cash for Clunkers program helped create this profit without a doubt, but Ford has also made major changes internally, cutting operational costs. Strong product launches have also helped, the F-150 doing especially well next to competitors. Less incentives have been necessary to offer in order to sell the cars, which is a good sign as it shows that consumers have faith that a Ford is worth the price. While there's still much to be done, the 3rd quarter results are the light at the end of the tunnel for Ford.

Ford has a history of prevailing in the face of great global challenges. It has weathered the storms of the Great Depression, two world wars, the gas crisis of the 1970s and a few recessions before this one. It defined a new form of industry when Henry Ford invented the moving assembly line and taught us that you can’t always ask the consumer what they would like.

Perhaps the rebound shouldn't be such a surprise, coming from a company whose history of resilience has a way of repeating itself. The battle cry of ‘prevail despite it all’ is a needed one during this period of doom and gloom and one that would be smart for a company like Ford to shout from the roof tops.

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